Google has warned that advances in quantum computing could eventually break the elliptic curve cryptography that secures cryptocurrencies. New research suggests these systems may be compromised with fewer resources than previously thought.
Using optimized versions of Shor's algorithm, a sufficiently powerful quantum computer could break current cryptographic systems more quickly than earlier estimates suggested. While the threat is not immediate, it may be closer to reality than previously believed.
To prepare, Google is urging the crypto industry to transition to post-quantum cryptography (PQC), adopt safer practices such as avoiding wallet address reuse, and consider policies for vulnerable or inactive funds.
The company also proposes a responsible disclosure approach using zero-knowledge proofs, allowing vulnerabilities to be verified without exposing exploitable details. The suggested transition timeline extends toward 2029.
Former Binance CEO Changpeng Zhao said quantum computing does not pose an existential threat to cryptocurrency.
"It's always easier to encrypt than decrypt," Zhao said, adding that crypto can evolve to post-quantum security. He emphasized that the primary challenge is coordination across decentralized systems, where adopting new standards could lead to delays, debate or even blockchain forks.
Zhao also noted practical concerns, including upgrading inactive or abandoned projects, potential bugs in new implementations, and the need for users who self-custody assets to migrate to quantum-safe wallets.
He raised the issue of long-dormant wallets, including those associated with Satoshi Nakamoto, and whether they could become vulnerable in the future if quantum attacks become viable.
Zhao concluded that while challenges exist, the crypto ecosystem will adapt and remain viable in a post-quantum world.
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